Business Advantages - Taxes

Compared to Georgia’s metro regions, property tax rates in Northwest Georgia are relatively low and local incentives can help reduce them even further.

The local development authorities in Catoosa, Chattooga, Dade and Walker counties will often offer a tax abatement to companies that choose to locate in Northwest Georgia. The number of new jobs created and the new or expanding company’s investment amount will determine the tax abatement.

Single Factor Apportionment Income Tax

The corporate income tax rate for Georgia is 6 percent. The Single Factor Gross Receipts apportionment formula, however, states that only a company’s gross receipts (sales made in Georgia) factor into determining a company’s state income tax liability. Thus, over the long term, many companies that locate in Northwest Georgia realize a large savings.

Many other states in the Southeast use a three-factor apportionment formula to determine a company’s corporate income tax liability, which means a company’s property, payroll and sales within the state are used for the calculation. Thus, many businesses may realize a better corporate tax environment in Georgia compared to other states in the region.

Please contact the JDA at 800.966.8092 for more information on your particular tax situation.

Property Taxes

Tax rates, which vary by incorporated and unincorporated areas of the county, determine property taxes. The assessment rate is 40 percent of the fair market value, while the millage rates include county, city, school and state tax rates. This rate applies to all real and personal property.

Inventory Tax Exemption

Freeport Exemption is the general term used for the exemption of ad valorem tax on specific classes of business inventories.

Currently, the following categories of inventoried goods are exempt:

Manufacturer’s raw materials and goods in process

Finished goods held by the original manufacturer

Finished goods held by distributors, wholesalers and manufacturers destined for out-of-state shipment

Catoosa County100%

Fort Oglethorpe60%

Ringgold100%

Job Tax Credits

Prospective businesses locating in Georgia would be eligible for a job tax credit on their state income tax liabilities for a five-year period. The tax credit amount depends on the county’s tier status and the number of jobs created. Since Catoosa County is designated as a Tier 4 community, companies creating at least 25 jobs there may be eligible to receive a $750 tax credit. As part of Catoosa County’s participation in the Northwest Georgia Joint Development Authority, Catoosa County is able to provide an additional $500 credit per job for a total of $1,250 per job tax credit.

Ports Activity Enhancement

If a Northwest Georgia company elects to increase its port traffic at the Port of Savannah or the Port of Brunswick, an additional $1,250 tax credit per job is available.

Inventory Tax Exemption

Freeport Exemption is the general term used for the exemption of ad valorem tax on specific classes of business inventories.

Currently, the following categories of inventoried goods are exempt:

Manufacturer’s raw materials and goods in process

Finished goods held by the original manufacturer

Finished goods held by distributors, wholesalers and manufacturers destined for out-of-state shipment

Chattooga County100%

Lyerly100%

Menlo100%

Summerville100%

Trion100%

Job Tax Credits

Prospective businesses locating in Georgia would be eligible for a job tax credit on their state income tax liabilities for a five-year period. The tax credit amount depends on the county’s tier status and the number of jobs created. Since Chattooga County is designated as a Tier 1 - Bottom 40 community, companies creating at least five jobs in Chattooga County may be eligible to receive a $3,500 tax credit. As part of the Northwest George Joint Development Authority that allows an additional $500 credit per job, Chattooga County’s total job tax credit is $4,000 per job.

Ports Activity Enhancement

If a Northwest Georgia company elects to increase its port traffic at the Port of Savannah or the Port of Brunswick, an additional $1,250 tax credit per job is available.

Dade County Tax Commissioner Office

Inventory Tax Exemption

Freeport Exemption is the general term used for the exemption of ad valorem tax on specific classes of business inventories.

Currently, the following categories of inventoried goods are exempt:

Manufacturer’s raw materials and goods in process

Finished goods held by the original manufacturer

Finished goods held by distributors, wholesalers and manufacturers destined for out-of-state shipment

Dade County100%

Trenton100%

Job Tax Credits

Prospective businesses locating in Northwest Georgia would be eligible for a job tax credit on their state income tax liabilities for a five-year period. The tax credit amount depends on the county’s tier status and the number of jobs created. Since Dade County is designated as a Tier 3 community, companies creating at least 15 jobs in Dade County may be eligible to receive a $1,250 tax credit. As part of the Northwest Georgia Joint Development Authority, Dade County allows an additional $500 credit per job offering that brings the total to a $1,750 per job tax credit.

Ports Activity Enhancement

If a Northwest Georgia company elects to increase its port traffic at the Port of Savannah or the Port of Brunswick, an additional $1,250 tax credit per job is available.

Inventory Tax Exemption

Freeport Exemption is the general term used for the exemption of ad valorem tax on specific classes of business inventories.

Currently, the following categories of inventoried goods are exempt:

Manufacturer’s raw materials and goods in process

Finished goods held by the original manufacturer

Finished goods held by distributors, wholesalers and manufacturers destined for out-of-state shipment

Walker County100%

Chickamauga100%

LaFayette100%

Lookout Mountain100%

Rossville100%

Job Tax Credits

Prospective businesses locating in Northwest Georgia would be eligible for a job tax credit on their state income tax liabilities for a five-year period. The tax credit amount depends on the county’s tier status and the number of jobs created. Since Walker County is designated as a Tier 3 community, businesses creating at least 15 jobs in the county may be eligible to receive a $1,250 tax credit. As part of the Northwest Georgia Joint Development Authority, Walker County allows an additional $500 credit per job for a total of $1,750 per job tax credit.

Ports Activity Enhancement

If a Northwest Georgia company elects to increase its port traffic at the Port of Savannah or the Port of Brunswick, an additional $1,250 tax credit per job is available.